New Sydney apartments built near public transport will no longer need a car space, under new rules announced on Tuesday.
The planning guidelines were designed to reduce housing costs and encourage public transport use.
Car park values may spike and councils will have more car owners wanting on-street parking permits.
NSW planning minister Pru Goward said draft guidelines would apply for car parking in developments built within 400 metres of a transport hub, such as a bus interchange or railway station around the inner Sydney council areas.
Ms Goward said the cost of a new apartment would be slashed by up to $50,000 under proposed changes.
"A car space can add up to $50,000 to the cost of a new apartment, so providing more flexibility around car parking requirements could lead to savings of up to the same amount for homebuyers," she said.
"Importantly, this change is restricted only to particular councils, applies only to development within close walking distance of transport services and strongly discourages councils from allowing residents of these buildings to receive street parking permits."
Real Estate Institute of NSW president Malcolm Gunning said they applaud what the planning minister is talking about.
“It really has got to be in the CBD locations - you really have to be in the five-kilometre ring of Sydney,” he told Real Estate Business.
“We think the minister is recognising the trend.
“The developers will look at the demand and economics of it and then if they don’t build car parks they will provide other opportunities for transport such as scooters, bikes and share cars,” he added.